(1) the term "agency" means agency as defined in section 552(e) of this title;

(2) the term "individual" means a citizen of the United States or an alien lawfully admitted
for permanent residence;

(3) the term "maintain" includes maintain, collect, use or disseminate;

(4) the term "record" means any item, collection, or grouping of information about an
individual that is maintained by an agency, including, but not limited to, his education,
transactions, medical history, and criminal or employment history and that contains his name, or
the identifying number, symbol, or other identifying particular assigned to the individual, such as
a finger or voice print or a photograph;

(5) the term "system of records" means a group of any records under the control of any
agency from which information is retrieved by the name of the individual or by some identifying
particular assigned to the individual;

(6) the term "statistical record" means a record in a system of records maintained for
statistical research or reporting purposes only and not used in whole or in part in making any
determination about an identifiable individual; except as provided in section 8 of Title 13;

(7) the term "routine use" means, with respect to the disclosure of a record, the use of such
record for a purpose which is compatible with the purpose for which it was collected;

(8) the term "matching program" --

(A) means any computerized comparison of --

(i) two or more automated systems of records or a system of records with non-Federal records for the purpose of --

(I) establishing or verifying the eligibility of, or continuing compliance with
statutory and regulatory requirements by, applicants for, recipients or beneficiaries
of, participants in, or providers of services with respect to, cash or in-kind
assistance or payments under Federal benefit programs; or

(II) recouping payments or delinquent debts under such Federal benefit
programs, or

(ii) two or more automated Federal personnel or payroll systems of records or a
system of Federal personnel or payroll records with non-Federal records,

(ii) matches performed to support any research or statistical project, the specific
data of which may not be used to make decisions concerning the rights, benefits, or
privileges of specific individuals;

(iii) matches performed, by an agency (or component thereof) which performs as
its principal function any activity pertaining to the enforcement of criminal laws,
subsequent to the initiation of a specific criminal or civil law enforcement investigation
of a named person or persons for the purpose of gathering evidence against such
person or persons;

(iv) matches of tax information

(I) pursuant to section 6103(d) of the Internal Revenue Code of 1986,

(II) for purposes of tax administration as defined in section 6103(b)(4) of such
Code,

(III) for the purpose of intercepting a tax refund due an individual under
authority granted by section 464 or 1137 of the Social Security Act, or

(IV) for the purpose of intercepting a tax refund due an individual under any
other tax fund intercept program authorized by statute which has been determined
by the Director of the Office of Management and Budget to contain verification,
notice, and hearing requirements that are substantially similar to the procedures in
section 1137 of the Social Security Act;

(v) matches --

(I) using records predominantly relating to Federal personnel, that are
performed for routine administrative purposes (subject to guidance provided by
the Director of the Office of Management and Budget pursuant to subsection (v);
or

(II) conducted by an agency using only records from systems of records
maintained by that agency;

If the purpose of the match is not to take any adverse financial, personnel, disciplinary, or other
adverse action against Federal personnel; or

(vi) matches performed for foreign counterintelligence purposes or to produce
background checks for security clearances of Federal personnel or Federal contractor
personnel;

(9) the term "recipient agency" means any agency, or contractor thereof, receiving records
contained in a system of records from a source agency for use in a matching program;

(10) the term "non-Federal agency" means any State or local government, or agency
thereof, which receives records contained in a system of records from a source agency for use in
a matching program;

(11) the term "source agency" means any agency which discloses records contained in a
system of records to be used in a matching program, or any State of local government, or
agency thereof, which discloses records to be used in a matching program;

(12) the term "Federal benefit program" means any program administered or funded by the
Federal Government, or by any agency of a State on behalf of the Federal Government,
providing cash or in-kind assistance in the form of payments, grants, loans, or loan guarantees to
individuals; and

(13) the term "Federal personnel" means officers and employees of the Government of the
United States, members of the uniformed services (including members of the Reserve
Components), and individuals entitled to receive immediate or deferred retirement benefits
under any retirement program of the Government of the United States (including survivor
benefits).

(b) Conditions of disclosure

No agency shall disclose any record which is contained in a system of records by any means of
communication to any person, or to another agency, except pursuant to a written request by, or with the
prior consent of, the individual to whom the record pertains, unless disclosure of the record would be:

(1) to those officers and employees of the agency which maintains the record who have a
need for the record in the performance of their duties;

(2) required under section 552 of this title;

(3) for a routine use as defined in subsection (a)(7) of this section and described under
subsection (e)(4)(D) of this section;

(4) to the Bureau of Census for purposes of planning or carrying out a census or survey or
related activity pursuant to the provisions of Title 13;

(5) to a recipient who has provided the agency with advance adequate written assurance
that the records will be used solely as a statistical research or reporting record, and the record is
transferred in a form that is not individually identifiable;

(6) to the National Archives of the United States as a record which has sufficient historical
or other value to warrant its continued preservation by the United States Government, or for
evaluation by the Administrator of General Services or his designee to determine whether the
record has such value;

(7) to another agency or to an instrumentality of any governmental jurisdiction within or
under the control of the United States for a civil or criminal law enforcement activity if the activity
is authorized by law, and if the head of the agency or instrumentality has made a written request
to the agency which maintains the record specifying the particular portion desired and the law
enforcement activity for which the record is sought;

(8) to a person pursuant to a showing of compelling circumstances affecting the health or
safety of an individual if upon such disclosure notification is transmitted to the last known
address of such individual;

(9) to either House of Congress, or to the extent of matter within its jurisdiction, any
committee or subcommittee thereof, any joint committee of Congress, or subcommittee of any
joint committee;

(10) to the Comptroller General, or any of his authorized representatives, in the course of
the performance of the duties of the General Accounting Office;

(11) pursuant to the order of a court of competent jurisdiction;

(12) to a consumer reporting agency in accordance with section 3711(f) of Title 31.

(c) Accounting for certain disclosures

Each agency, with respect to each system of records under its control shall:

(1) except for disclosures made under subsections (b)(1) or (b)(2) of this section keep an
accurate accounting of:

(A) the date, nature, and purpose of each disclosure of a record to any person or to
another agency made under subsection (b); and

(B) the name and address of the person or agency to whom the disclosure is made;

(2) retain the accounting made under paragraph (1) of this subsection for at least five years
or the life of the record, whichever is longer, after the disclosure for which the accounting is
made;

(3) except for disclosures made under subsection (b)(7) of this section, make the accounting
under paragraph (1) of this subsection available to the individual named in the record at his
request; and

(4) inform any person or other agency about any correction or notation of dispute made by
the agency in accordance with subsection (d) of this section of any record that has been
disclosed to the person or agency if an accounting of the disclosure was made.

(d) Access to records

Each agency that maintains a system of records shall:

(1) upon request by any individual to gain access to his record or to any information
pertaining to him which is contained in the system, permit him and, upon his request, a person of
his choosing to accompany him, to review the record and have a copy made of all or any portion
thereof in a form comprehensible to him, except that the agency may require the individual to
furnish a written statement authorizing discussion of that individual's record in the accompanying
person's presence;

(2) permit the individual to request amendment of a record pertaining to him and:

(A) not later than 10 days (excluding Saturdays, Sundays and legal public holidays)
after the date of receipt of such request, acknowledge in writing such receipt; and

(B) promptly, either:

(i) make any correction of any portion thereof which the individual believes is not
accurate, relevant, timely, or complete; or

(ii) inform the individual of its refusal to amend the record in accordance with his
request, the reason for the refusal, the procedures established by the agency for the
individual to request a review of that refusal by the head of the agency, and the name
and business address of that official;

(3) permit the individual who disagrees with the refusal of the agency to amend his record to
request a review of such refusal, and not later than 30 days (excluding Saturdays, Sundays, and
legal holidays) from the date on which the individual requests such review, complete such review
and make a final determination unless, for good cause shown, the head of the agency extends
such 30-day period; and if, after his review, the reviewing official also refuses to amend the
record in accordance with the request, permit the individual to file with the agency a concise
statement setting forth the reasons for his disagreement with the refusal of the agency, and
notify the individual of the provisions for judicial review of the reviewing official's determination
under subsection (g)(1)(A) of this section;

(4) in any disclosure, containing information about which the individual has filed a statement
of disagreement, occurring after the filing of the statement under paragraph (3) of this
subsection, clearly note any portion of the record which is disputed and provide copies of the
statement and, if the agency deems it appropriate, copies of a concise statement of reasons of
the agency for not making the amendments requested, to persons or other agencies to whom the
disputed record has been disclosed; and

(5) nothing in this section shall allow an individual access to any information compiled in
reasonable anticipation of a civil action or proceeding.

(e) Agency requirements

Each agency that maintains a system of records shall:

(1) maintain in its records only such information about an individual as is relevant and
necessary to accomplish a purpose of the agency required to be accomplished by statute or by
executive order of the President;

(2) collect information to the greatest extent practicable directly from the subject individual
when the information may result in adverse determinations about an individual's rights, benefits,
and privileges under Federal programs;

(3) inform each individual whom it asks to supply information, on the form which it uses to
collect the information or a separate form that can be retained by the individual:

(A) the authority (whether granted by statute, or by executive order of the President)
which authorizes the solicitation of the information and whether disclosure of such
information is mandatory or voluntary;

(B) the principal purpose for which the information is intended to be used;

(C) the routine uses which may be made of the information, as published pursuant to
paragraph (4)(D) of this subsection; and

(D) the effects on him, if any, of not providing all or any part of the requested
information;

(4) subject to the provisions of paragraph (1) of this subsection, publish in the Federal
Register upon establishment or revision a notice of the existence and character of the system of
records, which notice shall include:

(A) the name and location of the system;

(B) the categories of individuals on whom records are maintained in the system;

(C) the categories of records maintained in the system;

(D) each routine use of the records contained in the system, including the categories of
users and purpose of such use;

(E) the policies and practices of the agency regarding storage, retrievability, access
controls, retention, and disposal of the records;

(F) the title and business address of the agency official who is responsible for the
system of records;

(G) the agency procedures whereby an individual can be notified at his request if the
system of records contains a record pertaining to him;

(H) the agency procedures whereby an individual can be notified at his request how he
can gain access to any record pertaining to him contained in the system of records, and how
he can contest its contents; and

(I) the categories of sources of records in the system;

(5) maintain all records which are used by an agency in making any determination about
any individual with such accuracy, relevance, timeliness, and completeness as is reasonably
necessary to assure fairness to the individual in the determination;

(6) prior to disseminating any record about an individual to any person other than an
agency, unless the dissemination is made pursuant to subsection (b)(2) of this section, make
reasonable efforts to assure that such records are accurate, complete, timely, and relevant for
agency purposes;

(7) maintain no record describing how any individual exercises rights guaranteed by the
First Amendment unless expressly authorized by statute or by the individual about whom the
record is maintained or unless pertinent to and within the scope of an authorized law
enforcement activity;

(8) make reasonable efforts to serve notice on an individual when any record on such
individual is made available to any person under compulsory legal process when such process
becomes a matter of public record;

(9) establish rules of conduct for persons involved in the design, development, operation, or
maintenance of any system of records, or in maintaining any record, and instruct each such
person with respect to such rules and the requirements of this section, including any other rules
and procedures adopted pursuant to this section and the penalties for noncompliance;

(10) establish appropriate administrative, technical and physical safeguards to insure the
security and confidentiality of records and to protect against any anticipated threats or hazards to
their security or integrity which could result in substantial harm, embarrassment, inconvenience,
or unfairness to any individual on whom information is maintained;

(11) at least 30 days prior to publication of information under paragraph (4)(D) of this
subsection, publish in the Federal Register notice of any new use or intended use of the
information in the system, and provide an opportunity for interested persons to submit written
data, view, or arguments to the agency; and

(12) if such agency is a recipient agency or a source agency in a matching program with a
non-Federal agency, with respect to any establishment or revision of a matching program, at
least 30 days prior to conducting such a program, publish in the Federal Register notice of such
establishment or revision.

(f) Agency rules

In order to carry out the provisions of this section, each agency that maintains a system of
records shall promulgate rules, in accordance with the requirements (including general notice) of section
553 of this title, which shall:

(1) establish procedures whereby an individual can be notified in response to his request if
any system of records named by the individual contains a record pertaining to him;

(2) define reasonable times, places, and requirements for identifying an individual who
requests his record or information pertaining to him before the agency shall make the record or
information available to the individual;

(3) establish procedures for the disclosure to an individual upon his request of his record or
information pertaining to him, including special procedures, if deemed necessary, for the
disclosure to an individual of medical records, including psychological records pertaining to him;

(4) establish procedures for reviewing a request from an individual concerning the
amendment of any record or information pertaining to the individual, for making a determination
on the request, for an appeal within the agency of an initial adverse agency determination, and
for whatever additional means may be necessary for each individual to be able to exercise fully
his rights under this section; and

(5) establish fees to be charged, if any, to any individual for making copies of his record,
excluding the cost of any search for and review of the record.

The Office of the Federal Register shall biennially compile and publish the rules promulgated
under this subsection and agency notices published under subsection (e)(4) of this section in a form
available to the public at low cost.

(g) Civil remedies

(1) Whenever any agency:

(A) makes a determination under subsection (d)(3) of this section not to amend an
individual's record in accordance with his request, or fails to make such review in conformity
with that subsection;

(B) refuses to comply with an individual request under subsection (d)(1) of this section;

(C) fails to maintain any record concerning any individual with such accuracy,
relevance, timeliness, and completeness as in necessary to assure fairness in any
determination relating to the qualifications, character, rights, or opportunities of, or benefits
to the individual that may be made on the basis of such record, and consequently a
determination is made which is adverse to the individual; or

(D) fails to comply with any other provisions of this section, or any other rule
promulgated thereunder, in such a way as to have an adverse effect on an individual,

the individual may bring a civil action against the agency, and the district courts of the United
States shall have jurisdiction in the matters under the provisions of this subsection.

(2)(A) In any suit brought under the provisions of subsection (g)(1)(A) of this section, the
court may order the agency to amend the individual's record in accordance with his request or in
such other way as the court may direct. In such a case the court shall determine the matter de
novo.

(B) The court may assess against the United States reasonable attorney fees and other
litigation costs reasonably incurred in any case under this paragraph in which the
complainant has substantially prevailed.

(3)(A) In any suit brought under the provisions of subsection (g)(1)(B) of this section, the
court may enjoin the agency from withholding the records and order the production to the
complainant of any agency records improperly withheld from him. In such a case the court shall
determine the matter de novo, and may examine the contents of any agency records in camera
to determine whether the records or any portion thereof may be withheld under any of the
exemptions set for in subsection (k) of this section, and the burden is on the agency to sustain its
action.

(4) In any suit brought under the provisions of subsection (g)(1)(C) or (D) of this section in
which the court determines that the agency acted in a manner which was intentional or willful, the
United States shall be liable to the individual in an amount equal to the sum of:

(A) actual damages sustained by the individual as a result of the refusal or failure, but
in no case shall a person entitled to recovery receive less than the sum of $1,000; and

(B) the costs of the action together with reasonable attorney fees as determined by the
court.

(5) An action to enforce any liability created under this section may be brought in the district
court of the United States in the district in which the complainant resides, or has his principal
place of business, or in which the agency records are situated, or in the District of Columbia,
without regard to the amount in controversy, within two years from the date on which the cause
of action arises, except that where an agency has materially and willfully misrepresented any
information required under this section to be disclosed to an individual and the information so
misrepresented is material to establishment of the liability of the agency to the individual under
this section, the action may be brought at any time within two years after discovery by the
individual of the misrepresentation. Nothing in this section shall be construed to authorize any
civil action by reason of any injury sustained as the result of a disclosure of a record prior to
September 27, 1975.

(h) Rights of legal guardians

For purposes of this section, the parent of any minor, or the legal guardian of any individual
who has been declared incompetent due to physical or mental incapacity or age by a court of
competent jurisdiction, may act on behalf of the individual.

(i) Criminal penalties

(1) Any officer or employee of an agency, who by virtue of his employment or official
position, has possession of, or access to, agency records which contain individually identifiable
information the disclosure of which is prohibited by this section or by rules or regulations
established thereunder, and who knowing that disclosure of the specific material is prohibited,
willfully discloses the material in any manner to any person or agency not entitled to receive it,
shall be guilty of a misdemeanor and fined not more than $5,000.

(2) Any officer or employee of any agency who willfully maintains a system of records
without meeting the notice requirements of subsection (e)(4) of this section shall be guilty of a
misdemeanor and fined not more than $5,000.

(3) Any person who knowingly and willfully requests or obtains any record concerning an
individual from an agency under false pretenses shall be guilty of a misdemeanor and fined not
more than $5,000.

(j) General exemptions

The head of any agency may promulgate rules, in accordance with the requirements
(including general notice) of sections 553(b)(1), (2), and (3), (c) and (e) of this title, to exempt
any system of records within the agency from any part of this section, except, subsections (b),
(c)(1) and (2), (e)(4)(A) through (F), (e)(6), (7), (9), (10) and (11), and (i) if the system of records
is:

(1) maintained by the Central Intelligence Agency; or

(2) maintained by an agency or component thereof which performs as its principal function
any activity pertaining to the enforcement of criminal laws, including police efforts to prevent,
control, or reduce crime or to apprehend criminals, and the activities of prosecutors, courts,
correctional, probation, pardon, or parole authorities, and which consists of

(A) information compiled for the purpose of identifying individual criminal offenders and
alleged offenders and consisting only of identifying data and notations of arrests, the nature
and disposition of criminal charges, sentencing, confinement, release, and parole and
probation status;

(B) information compiled for the purpose of a criminal investigation, including reports of
informants and investigators, and associated with an identifiable individual; or

(C) reports identifiable to an individual compiled at any stage of the process of
enforcement of the criminal laws from arrest or indictment through release from supervision.

At the time rules are adopted under this subsection, the agency shall include in the
statement required under section 553(c) of this title, the reasons why the system of records is to
be exempted from a provision of this section.

(k) Specific exemptions

The head of any agency may promulgate rules, in accordance with the requirements
(including general notice) of sections 553b(1), (2), and (3), (c) and (e) of this title, to exempt any
system of records within the agency from subsections (c)(3), (d), (e)(1), (e)(4)(G), (H), and (I)
and (f) of this section if the system of records is:

(1) subject to the provisions of section 552b(1) of this title;

(2) investigatory material compiled for law enforcement purposes, other than material within
the scope of subsection (j)(2) of this section; Provided, however, That if any individual is denied
any right, privilege, or benefit that he would otherwise be entitled to by Federal law, or for which
he would otherwise be eligible, as a result of the maintenance of such material, such material
shall be provided to such individual, except to the extent that the disclosure of such material
would reveal the identity of a source who furnished information to the Government under an
express promise that the identity of the source would be held in confidence, or, prior to the
effective date of this section, under an implied promise that the identity of the source would be
held in confidence;

(3) maintained in connection with providing protective services to the President of the
United States or other individuals pursuant to section 3058 of Title 18;

(4) required by statute to be maintained and used solely as statistical records;

(5) investigatory material compiled solely for the purpose of determining suitability,
eligibility, or qualifications for Federal civilian employment, military service, Federal contracts, or
access to classified information, but only to the extent that the disclosure of such material would
reveal the identity of a source who furnished information to the Government under an express
promise that the identity of the source would be held in confidence, or, prior to the effective date
of this section, under an implied promise that the identity of the source would be held in
confidence;

(6) testing or examination material used solely to determine individual qualifications for
appointment or promotion in the Federal service the disclosure of which would compromise the
objectivity or fairness of the testing or examination process; or

(7) evaluation material used to determine potential for promotion in the armed services, but
only to the extent that the disclosure of such material would reveal the identity of a source who
furnished information to the Government under an express promise that the identity of the
source would be held in confidence, or, prior to the effective date of this section, under an
implied promise that the identity of the source would be held in confidence.

At the time rules are adopted under this subsection, the agency shall include in the
statement required under section 553(c) of this title, the reasons why the system of records is to
be exempted from a provision of this section.

(l) Archival records

(1) Each agency record which is accepted by the Administrator of General Services for
storage, processing, and servicing in accordance with section 3103 of Title 44 shall, for the
purposes of this section, be considered to be maintained by the agency which deposited the
record and shall be subject to the provisions of this section. The Administrator of General
Services shall not disclose the record except to the agency which maintains the record, or under
rules established by that agency which are not inconsistent with the provisions of this section.

(2) Each agency record pertaining to an identifiable individual which was transferred to the
National Archives of the United States as a record which has sufficient historical or other value to
warrant its continued preservation by the United States Government, prior to the effective date
of this section, shall, for the purposes of this section, be considered to be maintained by the
National Archives and shall not be subject to the provisions of this section, except that a
statement generally describing such records (modeled after the requirements relating to records
subject to subsections (e)(4)(A) through (G) of this section) shall be published in the Federal
Register.

(3) Each agency record pertaining to an identifiable individual which is transferred to the
National Archives of the United States as a record which has sufficient historical or other value to
warrant its continued preservation by the United States Government, on, or after the effective
date of this section, shall, for purposes of this section, be considered to be maintained by the
National Archives and shall be exempt from the requirements of this section except subsections
(e)(4)(A) through (G) and (e)(9) of this section.

(m) Government contractors

(1) When an agency provides by a contract for the operation by or on behalf of the agency
of a system of records to accomplish an agency function, the agency shall, consistent with its
authority, cause the requirements of this section to be applied to such system. For purposes of
subsection (i) of this section any contractor and any employee of such contractor, if such contract
is agreed to on or after the effective date of this section, shall be considered to be an employee
of an agency.

(2) A consumer reporting agency to which a record is disclosed under 3711(f) of Title 31
shall not be considered a contractor for purposes of this section.

(n) Mailing lists

An individual's name and address may not be sold or rented by an agency unless such
action is specifically authorized by law. This provision shall not be construed to require the
withholding of names and addresses otherwise permitted to be made public.

(o) Matching agreements

(1) No record which is contained in a system of records may be disclosed to a recipient
agency or non-Federal agency for use in a computer matching program except pursuant to a
written agreement between the source agency and the recipient agency or non-Federal agency
specifying --

(A) the purpose and legal authority for conducting the program;

(B) the justification for the program and the anticipated results, including a specific
estimate of any savings;

(C) a description of the records that will be matched, including each data element that
will be used, the approximate number of records that will be matched, and the projected
starting and completion dates of the matching program;

(D) procedures for providing individualized notice at the time of application, and notice
periodically thereafter as directed by the Data Integrity Board of such agency (subject to
guidance provided by the Director of the Office of Management and Budget pursuant to
subsection (v), to --

(i) applicants for and recipients of financial assistance or payments under Federal
benefit programs, and

(ii) applicants for and holders of positions as Federal personnel, that any
information provided by such applicants, recipients, holders, and individuals may be
subject to verification through matching programs;

(E) procedures for verifying information produced in such matching programs as
required under subsection (p);

(F) procedures for the retention and timely destruction of identifiable records created
by a recipient agency or non-Federal agency in such matching program;

(G) procedures for ensuring the administrative, technical, and physical security of the
records matched and the results of such programs;

(H) prohibitions on duplication and redisclosure of records provided by the source
agency within or outside the recipient agency or the non-Federal agency, except where
required by law or essential to the conduct of the matching program;

(I) procedures governing the use by a recipient agency or non-Federal agency of
records provided in a matching program by a source agency, including procedures
governing return of the records to the source agency or destruction of records used in such
program;

(J) information on assessments that have been made on the accuracy of the records
that will be used in such matching program; and

(K) that the Comptroller General may have access to all records of a recipient agency
or non-Federal agency that the Comptroller General deems necessary in order to monitor or
verify compliance with the agreement.

(2)(A) A copy of each agreement entered into pursuant to paragraph (1) shall --

(i) be transmitted to the Committee on Governmental Affairs of the Senate and
the Committee on Government Operations of the House of Representatives; and

(ii) be available upon request to the public.

(B) No such agreement shall be effective until 30 days after the date on which such a
copy is transmitted pursuant to subparagraph (A)(i);

(C) Such an agreement shall remain in effect only for such period, not to exceed 18
months, as the Data Integrity Board of the agency determines is appropriate in light of the
purposes, and length of time necessary for the conduct, of the matching program;

(D) Within 3 months prior to the expiration of such an agreement pursuant to
subparagraph (C), the Data Integrity Board of the agency may, without additional review,
renew the matching agreement for a current, ongoing matching program for not more than
one additional year if --

(i) such program will be conducted without any change, and

(ii) each party to the agreement certifies to the Board in writing that the program
has been conducted in compliance with the agreement.

(p) Verification and opportunity to contest findings

(1) In order to protect any individual whose records are used in a matching program, no
recipient agency, non-Federal agency, or source agency may suspend, terminate, reduce, or
make a final denial of any financial assistance or payment under a Federal benefit program to
such individual, or take other adverse action against such individual, as a result of information
produced by such matching program, until --

(A)(i) the agency has independently verified the information; or

(ii) the Data Integrity Board of the agency, or in the case of a non-Federal agency
the Data Integrity Board of the source agency, determines in accordance with guidance
issued by the Director of the Office of Management and Budget that --

(I) the information is limited to identification and amount of benefits paid by
the source agency under a Federal benefit program; and

(II) there is a high degree of confidence that the information provided to the
recipient agency is accurate;

(B) the individual receives a notice from the agency containing a statement of its
findings and informing the individual of the opportunity to contest such findings; and

(C)(i) the expiration of any time period established for the program by statute or
regulation for the individual to respond to that notice, or

(ii) in the case of a program for which no such period is established, the end of the
30-day period beginning on the date on which notice under subparagraph (B) is mailed
or otherwise provided to the individual.

(2) Independent verification referred to in paragraph (1) requires investigation and
confirmation of specific information relating to an individual that is used as a basis for an
adverse action against the individual, including where applicable investigation and confirmation
of --

(A) the amount of any asset or income involved;

(B) whether such individual actually has or had access to such asset or income for
such individual's own use; and

(C) the period or periods when the individual actually had such asset or income.

(3) Notwithstanding paragraph (1), an agency may take any appropriate action otherwise
prohibited by such paragraph, if the agency determines that the public health or public safety
may be adversely affected or significantly threatened during the notice period required by such
paragraph.

(q) Sanctions

(1) Notwithstanding any other provisions of law, no source agency may disclose any record
which is contained in a system of records to a recipient agency or non-Federal agency for a
matching program if such source agency has reason to believe that the requirements of
subsection (p), or any matching agreement entered into pursuant to subsection (o), or both, are
not being met by such recipient agency.

(2) No source agency may renew a matching agreement unless --

(A) the recipient agency or non-Federal agency has certified that it has complied with
the provisions of that agreement, and

(B) the source agency has no reason to believe that the certification is inaccurate.

(r) Report on new systems and matching programs

Each agency that proposes to establish or make a significant change in a system of records
or a matching program shall provide adequate advance notice of any such proposal (in
duplicate) to the Committee on Government Operations of the House of Representatives, the
Committee on Governmental Affairs of the Senate, and the Office of Management and Budget in
order to permit an evaluation of the probable or potential effect of such proposal on the privacy
or other rights of individuals.

(s) Biennial report

The President shall biennially submit to the Speaker of the House of Representatives and
the President pro tempore of the Senate a report --

(1) describing the actions of the Director of Management and Budget pursuant to Section 6
of the Privacy Act of 1974 during the preceding 2 years;

(2) describing the exercise of individual rights of access and amendment under this section
during such years;

(3) identifying changes in or additions to systems of records;

(4) containing other such information concerning administration of this section as may be
necessary

or useful to the Congress in reviewing the effectiveness of this section in carrying out the
purposes of the Privacy Act of 1974.

(t) Effect of other laws

Relationship of the Privacy Act to the Freedom of Information Act.

(1) No agency shall rely on any exemption contained in section 552 of this title to withhold
from an individual any record which is otherwise accessible to such individual under the
provisions of this section.

(2) No agency shall rely on any exemption in this section to withhold from an individual any
record which is otherwise accessible to such individual under the provisions of section 552 of this
title.

(u) Data Integrity Boards

(1) Every agency conducting or participating in a matching program shall establish a Data
Integrity Board to oversee and coordinate among the various components of such agency the
agency's implementation of this section.

(2) Each Data Integrity Board shall consist of senior officials designated by the head of the
agency, and shall include any senior official designated by the head of the agency as responsible
for implementation of this section, and the Inspector General of the agency, if any. The
Inspector General shall not serve as the chairman of the Data Integrity Board.

(3) Each Data Integrity Board --

(A) Shall review, approve, and maintain all written agreements for receipt or disclosure
of agency records for matching programs to ensure compliance with subsection (o), and all
relevant statutes, regulations, and guidelines;

(B) shall review all matching programs in which the agency has participated during the
year, either as a source agency or recipient agency, determine compliance with applicable
laws, regulations, and agency agreements, and assess the cost and benefits of such
programs;

(C) shall review all recurring matching programs in which the agency has participated
during the year, either as a source agency or recipient agency, for continued justification for
such disclosures;

(D) shall compile an annual report, which shall be submitted to the head of the agency
and the Office of Management and Budget and made available to the public on request,
describing the matching activities of the agency, including --

(i) matching programs in which the agency has participated as a source agency or
recipient agency;

(ii) matching agreements proposed under subsection (o) that were disapproved by
the Board;

(iv) the reasons for any waiver of the requirement in paragraph (4) of this section
for completion and submission of a cost-benefit analysis prior to the approval of a
matching program;

(v) any violations of matching agreements that have been alleged or identified
and any corrective action taken; and

(vi) any other information required by the Director of the Office of Management
and Budget to be included in such report;

(E) shall serve as a clearinghouse for receiving and providing information on the
accuracy, completeness, and reliability of records used in matching programs;

(F) shall provide interpretation and guidance to agency components and personnel on
the requirements of this section for matching programs;

(G) shall review agency recordkeeping and disposal policies and practices for matching
programs to assure compliance with this section; and

(H) may review and report on any agency matching activities that are not matching
programs.

(4)(A) Except as provided in subparagraphs (B) and (C), a Data Integrity Board shall not
approve any written agreement for a matching program unless the agency has completed and
submitted to such Board a cost-benefit analysis of the proposed program and such analysis
demonstrates that the program is likely to be cost effective.

(B) The Board may waive the requirements of subparagraph (A) of this paragraph if it
determines in writing, in accordance with guidelines prescribed by the Director of the Office
of Management and Budget, that a cost-benefit analysis is not required.

(C) A cost-benefit analysis shall not be required under subparagraph (A) prior to the initial
approval of a written agreement for a matching program that is specifically required by
statute. Any subsequent written agreement for such a program shall not be approved by the
Data Integrity Board unless the agency has submitted a cost-benefit analysis of the program
under the preceding approval of such agreement.

(5)(A) If a matching agreement is disapproved by a Data Integrity Board, any party to such
an agreement may appeal the disapproval to the Director of the Office of Management and
Budget. Timely notice of the filing of such an appeal shall be provided by the Director of the
Office of Management and Budget to the Committee on Governmental Affairs of the Senate and
the Committee on Government Operations of the House of Representatives.

(B) The Director of the Office of Management and Budget may approve a matching
agreement notwithstanding the disapproval of a Data Integrity Board in the Director
determines that --

(i) the matching program will be consistent with all applicable legal, regulatory,
and policy requirements;

(ii) there is adequate evidence that the matching agreement will be cost-effective;
and

(iii) the matching program is in the public interest.

(C) The decision of the Director to approve a matching agreement shall not take effect
until 30 days after it is reported to committees described in subparagraph (A).

(D) If the Data Integrity Board and the Director of the Office of Management and
Budget disapprove a matching program proposed by the Inspector General of an agency,
the Inspector General may report the disapproval to the head of the agency and to
Congress.

(6) The Director of the Office of Management and Budget shall, annually during the first 3
years after the date of enactment of this subsection and biennially thereafter, consolidate in a
report to the Congress the information contained in the reports from the various Data Integrity
Boards under paragraph (3)(D). Such report shall include detailed information about costs and
benefits of matching programs that are conducted during the period covered by such
consolidated report, and shall identify each waiver granted by a Data Integrity Board of the
requirement for completion and submission of a cost-benefit analysis and the reasons for
granting the waiver.

(7) In the reports required by paragraphs (3)(D) and (6), agency matching activities that are
not matching programs may be reported on an aggregate basis, to the extent necessary to
protect ongoing law enforcement or counterintelligence investigations.

(v) Office of Management and Budget responsibilities

The Director of the Office of Management and Budget shall --

(1) develop and, after notice and opportunity for public comment, prescribe guidelines and
regulations for the use of agencies in implementing the provisions of this section; and

(2) provide continuing assistance to and oversight of the implementation of this section by
agencies.

Section 7

(a)(1) It shall be unlawful for any Federal, State, or local government agency to deny to any
individual any right, benefit, or privilege provided by law because of such individual's refusal to
disclose his social security account number.

(2) the provisions of paragraph (1) of this subsection shall not apply with respect to --

(A) any disclosure which is required by Federal statute, or

(B) the disclosure of a social security number to any Federal, State or local
agency maintaining a system of records in existence and operating before January 1,
1975, if such disclosure was required under statute or regulation adopted prior to such
date to verify the identity of an individual.

(b) Any Federal, State or local government agency which requests an individual to disclose
his social security account number shall inform that individual whether that disclosure is
mandatory or voluntary, by what statutory or other authority such number is solicited, and what
uses will be made of it.

Rules of construction

Nothing in the amendments made by the Computer Matching and Privacy Protection Act shall be
construed to authorize --

(1) the establishment or maintenance by any agency of a national data bank that combines,
merges, or links information on individuals maintained in systems of records maintained by other
Federal agencies;

(2) the direct linking of computerized systems of records maintained by Federal agencies;

(3) the computer matching of records not otherwise authorized by law; or

(4) the disclosure of records for computer matching except to a Federal, State, or local
agency.